BIBA, the British Insurance Brokers Association, on behalf of its members and their customers, is astonished that the Chancellor decided that a further increase in IPT is required to strengthen the nations flood defences. The announced increase in IPT means that, year on year, insurance buyers face an increase in tax of 66.6% since March 2015.
Previous research by BIBA member, the AA, among 29,000 drivers found that 87% of motorists believed the tax was unfair and that increases will encourage some drivers to attempt to drive without insurance.
Steve White BIBA CEO said: “Let’s be clear about this. IPT is a tax collected and remitted by insurers, it is a tax on premiums paid by policyholders – motorists, householders, and businesses large and small. Whilst we support the additional spending on flood defences we believe that this could have been funded by the projected £1.5bn annual funds paid to the exchequer as a result of the increase in IPT put in place only last November which puts an increased burden on policyholders, many of whom are suffering from ongoing flood damage.”